“I’m almost 7….in just two more birthdays”

Ava exclaimed with excitement while jumping up and down like 5 year olds do.  My wife and I tried our best to not show how funny we thought that was, but we did laugh pretty hard once we were alone.  Kids are awesome!  Their optimism and excitement with life are unparalleled in the adult world.  Speaking of excitement are you starting to feel some?  Here is what Rachel Barr had to say recently:

“Through the education and care I received from Bart at Baker and Lindsey I was able to purchase a home that I never dreamed was possible.  As a first-time buyer, both Bart [at Baker Lindsey] and Jodie [Beane] at Century 21 walked me through the process step by step.  Despite the emotional roller-coaster the market handed me, I could always depend on the team of people around me to keep me grounded.  I am truly thankful for the feeling of complete trust I experienced in working with Baker & Lindsey! You guys rock!” 

We’ve seen a significant (albeit small) ‘shift in the wind” as it pertains to real estate.  We are seeing several of our clients actually competing for houses now.  Some clients have made offers on up to 4 houses only to find themselves outbid on all of them!  While this isn’t necessarily news that will make me jump up and down like Ava did, it at least is causing me to breathe a little easier.  Real estate is supposed to be a cycle, but I was starting to think we would need to redefine the word cycle.  I am beginning to see what looks like a U shaped recovery in the making.  Part of that recovery may be caused by….

The gift that keeps on giving….too bad we have to pay for it eventually!  According to the Mortgage Bankers Association, the first time homebuyer tax credit looks like it will be extended, again.  This would extend the current November 30 deadline to June 30 of 2010; you’ll have to have a signed purchase contract by April 30 and close by the end of June. More potential homebuyers will benefit from the latest iteration of this credit also.  If you’ve lived in your current residence for a consecutive 5 year period out of the last 8 years there is a new $6,500 tax credit that you’ll likely be eligible for if you decide to move up to a larger home.

Of course there are pros and cons to this tax credit.  The biggest drawback is that we must pay it all back; indeed all of society will be paying back the tax credits given to some individuals.  One of the advantages to this is that if it helps stabilize the housing market perhaps all of us that own homes will see our values stop declining; and that may be worth a higher tax bill down the road.  Who knows? Ultimately, we vote in the legislatures and we have the ability to vote them right back out again if we aren’t happy with their decisions. 

The final vote on this tax credit is anticipated to come some time this week; whatever the result this appears to be a very good time to buy real estate.  Interest rates are low, home prices are down, and tax credits are available to at least some buyers. 

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We’re providing a professional approach to mortgage finance!  How can we help you?

Are you proud of your arms?

Many people have adjustable rate mortgages and are considering a refinance to a fixed rate mortgage.  I was recently asked for “good, solid advice” on whether a person should refinance their ARM or not.  I got a copy of his Mortgage Note and provided insight that I’ll share below. 

 

First, I’ve got to share our quote of the week with you.  “I am glad to see that excellent service has not completely vanished from the U.S. Bart went way beyond the call of duty in closing (financing) our (new) home.  On top of that he sat with our buyer (of our previous home) to try and rescue them from Bank of America’s incompetence.  After working to help our buyer Bart even won their business after B of A left all of us homeless for 2 nights.  I will always be a customer!  Thanks Bart-we might still be homeless if it was up to B of A.” Andy C. (borrower) Oct 5, 2009

 

How does professionalism demonstrate itself? In our business it’s not always through a closing where we earn money, but it always includes bringing value to the customer.  Sometimes we get paid, other times not; like in the case of “Jordon”.  Jordon has a large loan that is has a fixed rate of five percent.  He’s concerned though.  You see his fixed rate will expire in February and his rate will adjust because he has an ARM.  It would be very easy for me to convince Jordon that he needs to refinance using scare tactics, but we have never done business that way, nor will we ever!  We approach everything with an eye toward education and understanding, not revenue generation.

 

Jordon’s interest rate is based on LIBOR which is currently only about 1.20 percent.  In February his mortgage rate will go to whatever LIBOR is plus 2.25 percent.  Thus in February, his rate is going to go down to (likely) under 4 percent!  His subsequent annual adjustments can only be a maximum of 2 percent per year.  Worst case scenario, his mortgage interest rate is going to go from under 4 percent next year, to under 6 percent the following year, and under 8 percent the following year.  That’s a 3 year average of less than 6 percent (worst case scenario) and he incurs no cost to achieve that!  Since he’s thinking he’ll sell his home within 3-4 years, he has decided to keep his current mortgage.  He doesn’t incur any closing costs, and is now approaching his rate change date with confidence that he’s making the right decision!

 

That is a “Professional Approach to Mortgage Finance”!  Do you have an adjustable rate mortgage you’d like us to look at?

“The test results are in, and there’s something we need to talk about…”

That’s typically not how you want a conversation to begin!  For the Baker and Lindsey Niceville Office however, the test results seem to be positive all the time; so they’re things we like to discuss!  In an effort to serve our clients better and meet their highest expectations, we ask for our client’s input on how we have done in accomplishing our goals of providing value, service, and education.  In a nutshell, are we providing “A Professional Approach to Mortgage Finance”?  Indeed, the answer seems to be a resounding yes!

 

It has come to my attention that while I get to see these “test results” on a regular basis, I don’t share them with our newsletter readers.  Going forward I intend to publish a “quote of the week” in the Weekly Update coming from our office.  It is our sincere hope that by reading these comments from real people just like yourself, you’ll be even more confident when referring people to the Baker and Lindsey Niceville Office for mortgage financing.

 

Before I provide several recent comments though, I wanted to let you know that since mid April the Baker Lindsey Niceville Office has approved and funded mortgage financing for 16 people in the Okaloosa County area that had already been turned down by Bank of America, Wells Fargo, or other local lenders.  Obviously, we’re doing our best to turn the housing market around by providing solutions for these 16 houses (in addition to our 55 other closings) in just the last 5 months!  That’s an average of over 14 closings per month since April!

 

In this market that type of success can only be attributable to 2 things.  The first, Divine blessing, may not mean much to some folks, but to Steve and I it’s all that really matters.  The second is that our reputation is spreading.  We work hard to impress our clients.  Below are some comments we have recently received that I think you’ll find interesting.  If you’d like to see more, you can visit our office and see the book full of completed surveys on our lobby table.  So what are people saying?

 

“Thank you Steve!  It has been a great pleasure working with you–easiest process I’ve been through in five home closings.” Sept 24, 2009 from Neil W. (Borrower)

 

“Steve, I think this transaction went very well-especially since we had less than 3 weeks to close!  Even if you weren’t available to take my calls, I always got a return call quickly.  Great communication!  Thank you for your service!” Sept 23, 2009 from Linda Z. (Realtor)

 

“This was a difficult time in our life.  We were very close to paying off our home.  Unfortunate circumstances created financial stress.  Bart & Steve offered much help and information.  Their attentiveness, respect, and caring attitude made this process stress-free and gave us confidence to move on.  God used them to bring relief and spur us on.  They were knowledgeable and businesslike yet personable and sensitive to our needs.  We thank God for such men of integrity.” Sept 11, 2009 from Carlos P. (Borrower)

 

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